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CESCO-LME new warehouse rule may have raised copper financing
April 9, 2013 / 2:53 PM / 5 years ago

CESCO-LME new warehouse rule may have raised copper financing

SANTIAGO, April 9 (Reuters) - The London Metal Exchange’s warehouse load-out rule change may have made it possible for financiers to start financing the storage of copper, the exchange’s chief executive said on Tuesday.

In an April 1 rule change, the LME stipulated that storage sheds with big queues of one metal waiting to be delivered out must start loading out other so-called “non-dominant” metals separately at a rate of 500 tonnes per day. The move was aimed at cutting queues for metal stuck behind aluminium.

“By assuring ... that they can possibly get an extra 500 tonnes out of warehouses, we may have inadvertently made it possible (for financiers) to now start financing copper as well,” Abbott said at the CESCO/CRU conference in Santiago.

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